Router Protocol Raises Funds From Investors
The second round of funding has just been completed by Router Protocol which recovered funds of $4.1 million raised from a cohort of venture capital firms and prominent web2.0/web3.0 executives and founders. The list of leading investors that participated includes; Coinbase Ventures, Woodstock Fund, QCP Capital, Alameda Research, De-Fi Capital, Polygon, Wintermute, Shima Capital, TeraSurge Capital, Maple Block, and Bison Fund, not leaving out the leading angels which were; Polygon’s Sandeep Nailwal, Doordash’s Gokul Rajaram, Aave’s Ajit Tripathi.Â
This isn’t the only gain, Router Protocol also received grants from Terraform Labs (Terra) and the Algorand Foundation. It also completed its seed round at the beginning of this year which raised $480,000 and the latest private sale was oversubscribed which indicated that there is a flock of investors looking for high-value projects in the interoperability space. And proceeds from the sale were to be used to further support the ecosystem which includes improving Router’s cross-chain infrastructure and building the Router V2 in which Router Protocol will have its own blockchain for managing inter-blockchain messages.
The exponential growth the DeFi and Layer-1 market has been experiencing in the past year has led to significant liquidity fragmentation across blockchains. With networks such as Polygon, Avalanche, Polkadot, and Fantom competing with Ethereum, the funds locked in each of those protocols takes away from the overall liquidity of another. This drastically reduces the usability of smaller blockchain networks that might be able to compete with Ethereum on account of their superior technology.
Future Gains of Router ProtocolÂ
1. To solve issues above by deploying a cross-chain bridge that connects the liquidity that would have otherwise been fragmented across various blockchains.Â
2. To deploy ParaRouter contracts on different blockchains that will be able to communicate with each other through the Central Router. Funds moving through the protocol are exchanged into stablecoins on the source chain and then swapped into the desired asset on the target chain.
For investors with funds spread across various different blockchains, direct access to a project that provides a seamless bridge between networks is a significant value proposition. For Router Protocol, support from some of the industry’s biggest VCs will certainly boost interest from the wider community. Router Protocol will introduce a multi-chain token launch platform and start offering its SDK for other projects to develop upon in the coming months. All of these are developments that have the potential to put Router on the map, not just on its native Polygon, but across the entire DeFi system as well. Â
Router Protocol is committed to building a cross-chain infrastructure that facilitates seamless flow of liquidity across blockchains, allows for a range of use cases that leverage and extend the composability of DeFi across various blockchains. It promotes liquidity migration and developer efforts towards various emerging chains and solutions, and eventually leads to a thriving multi-chain ecosystem.
To get updates and information, check the following platforms:
Website: https://routerprotocol.com/
Litepaper: https://routerprotocol.com/assets/docs/Router-Litepaper.pdf
Twitter: https://twitter.com/routerprotocol
Telegram: https://t.me/routerprotocol
Telegram announcements: https://t.me/router_ann
Discord: https://discord.gg/yjM2fUUHvnÂ